goeasy Stock Tanks 32% — Dividend Gone, Guidance Gone, What’s Left?

TLDR

• goeasy (GSY / EHMEF) fell over 32% on Tuesday after revealing a ~C$178M incremental charge-off in its LendCare division for Q4 2025
• The company withdrew its Q4 outlook and three-year financial forecast entirely
• Net charge-off rate is expected to rise to the mid-teens in 2026, up from ~12.9% in 2025
• The quarterly dividend has been suspended and share buybacks halted immediately
• A 6-point action plan was announced, including new leadership at LendCare and a push to cut auto and powersports originations

goeasy (EHMEF / GSY) has had a rough few years building up to Tuesday’s rout, but this was the moment investors had been dreading. The Canadian non-prime lender told markets it expects to book an incremental charge-off of approximately C$178 million against gross consumer loans receivable of C$5.5 billion for Q4 2025. A related write-down of ~C$55 million for loan interest and fees is also expected.

goeasy Ltd., GSY.TO

Total net charge-offs for the quarter are projected at around C$331 million.

The company also flagged a sequential net increase of roughly C$86 million in credit loss allowance on its gross consumer loan book.

That’s a lot of bad news in one morning — and markets didn’t take it kindly. EHMEF dropped 32% to $57.37 shortly after the open. In Canada, GSY was down as much as 50% on the Toronto Stock Exchange.

The net charge-off rate for full-year 2025 is expected to land at approximately 12.9%. Management warned that forward-looking credit performance on LendCare loans will be worse than previously anticipated, with the annual net charge-off rate expected to climb to the mid-teens in 2026.

LendCare at the Center of the Storm

The LendCare division — acquired by goeasy in 2021 — is the core of the problem. The unit grew rapidly, but it appears that growth outpaced the operational infrastructure needed to manage it properly.

A reporting methodology issue was also disclosed. Certain customer payments were recorded as received while still being settled at month end — some of which were ultimately not collected. This also affected reported delinquency figures. The company says the change to correct this is “not material.”

CFO Felix Wu, who had been serving in an interim capacity since September 30, 2025, was confirmed as permanent CFO on Tuesday. He acknowledged the company expects “pressure on net charge-offs and higher delinquency reporting for the coming quarters, before an anticipated improvement in 2027.”

Dividend Suspended, Guidance Pulled

In addition to the charge-off announcement, goeasy suspended its quarterly dividend effective immediately and said it will not repurchase stock.

The company also withdrew both its Q4 guidance and its previously issued three-year financial forecast.

To address the issues at LendCare, goeasy announced a 6-point action plan. The company will reduce auto and powersports originations from LendCare’s merchant channels. It will also integrate LendCare and easyfinancial into one unified operating model.

Growth will be redirected toward easyfinancial’s unsecured and home equity lending direct-to-consumer business. The company also said it can deliver annualized cost savings of approximately C$30 million through operational efficiencies.

Farhan Ali Khan has been appointed as the new head of LendCare.

This latest blow comes after significant management turbulence. CEO Jason Mullins announced his retirement in July 2024. His replacement, Dan Rees, left in December 2025 due to a blood disorder. Patrick Ens, an internal candidate, was named in his place.

Since Mullins announced his retirement in 2024, GSY stock is down more than 60%.

goeasy is scheduled to report its full Q4 2025 financial results after market close on Wednesday, March 25.

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